A 139-year-old Santa Fe bank is getting new ownership after its majority shareholder pledged his stock to cover tens of millions of dollars in personal debt he ultimately could not repay; art was also reportedly used as additional collateral. Bank7 Corp., an Oklahoma City-based lender, submitted the winning $91 million bid in a court-supervised auction to acquire a 71% controlling stake in Century Financial Services Corporation, the holding company for Century Bank, on September 3, but the acquisition had not yet closed.
The bid nets out to roughly $89 million after a $2 million break-up fee credit, according to a Bank7 press release. The winning bid came in well above the company's initial $68 million stalking-horse offer made after Bank7 was designated the baseline bidder in July, as first detailed by American Banker. Bank7 president and CEO Thomas Travis said the company is “looking forward to completing this transaction and working closely with the employees, customers and communities served by Century,” per the same outlet's reporting.
How a Personal Debt Spiral Cost Control of a Bank
The chain of events traces back to former Century Bank chairman Gerald Peters, who used his controlling stake in the holding company as collateral on loans that later went into default. Court filings show that between 2019 and 2024, Peters and his wife executed loan agreements with Kansas-based KS StateBank totaling $37 million, according to court records. Per American Banker's reporting, Peters also borrowed millions of dollars from other banks and credit unions, including New Mexico Bank & Trust, while art by Pablo Picasso and Andrew Wyeth was reportedly used as additional collateral, a detail attributed to the Santa Fe New Mexican.
When Peters defaulted, KS StateBank went to court to be made whole on the loans, initiating the process that ultimately led to acceptance of Bank7's offer. The case included a court-appointed receiver and a receivership proceeding involving the controlling shares of Century Financial Services Corporation. Peters' financial troubles extended beyond the bank stock: A Santa Fe jury awarded a woman $31 million in damages over a slip-and-fall injury outside Maria's New Mexican Kitchen, a property or restaurant associated with Peters. Peters was also involved in earlier, prolonged shareholder litigation over corporate control and stock valuations tied to New Mexico Banquest Investors Corporation, according to New Mexico Supreme Court records from 2007.
Century Bank Says It Was Never for Sale
Even as the fight over ownership played out in federal court, Century Bank's own leadership moved to reassure depositors. Following the initial buyout announcement in July, Century Bank President and CEO John E. Brichetto issued a public statement clarifying that the bank itself was “not for sale,” was not a party to the stock purchase agreement, and that customer accounts and daily operations would remain unaffected, according to the Los Alamos Daily Post. As of June 30, Century Bank held $1.36 billion in total assets, $1.23 billion in total deposits, and $845 million in gross loans across its nine New Mexico branches and two Texas loan production offices.
Century Bank's roots run deep in northern New Mexico. It traces its origins to 1887, according to BauerFinancial. Bank7 has said it plans to retain the Century brand and focus its New Mexico expansion on the Santa Fe market.
What Comes Next for the Combined Bank
Bank7 expects to complete the acquisition during the fourth quarter, per the company's press release, though the deal still requires regulatory approvals. Bank7's proposed acquisition of the 71% stake remains subject to those approvals. Once combined, Bank7 Corp. will have approximately $3.4 billion in combined assets, bringing together Bank7's existing $1.9 billion in assets with Century's balance sheet.
Travis has said Bank7 is not looking to play hardball with the remaining ownership: “We're not adversarial people. We're not bottom-feeder people. We've had plenty of transactions in our history where we deal fairly and professionally with people,” he said in July, per American Banker's reporting. Piper Sandler analyst Nathan Race said Bank7 executives are well-positioned to eventually buy out Century's remaining 29% stake, and Travis himself said in July he was confident in Bank7's ability to do so.
The deal also follows transactions involving New Mexico Bank & Trust, which had lent money to Peters, and HTLF Bank, which later sold its New Mexico operations to UMB Financial. Bank7's expansion footprint is contiguous to Oklahoma, Texas and Kansas, and the Century deal marks its move into the Santa Fe market — a 139-year-old institution now changing hands not because of trouble at the bank, but because of one man's collapsing personal finances.
